Two Journeys To a Municipal Broadband Solution Bringing Broadband to Maine’s Rural Communities CEI Hallowell, ME 10/25/2016 Denzel Hankinson Leverett, MA Page Clason Islesboro, ME

Software engineer Database engineer Network engineer Capital projects manager Retired research and development executive (BBCom and Board member) Attorney and member of the Select Board (BBCom Chair/Board member) Leverett Exec Administrator (BBCom and MLP manager) Retired business development executive (MLP Board Chair) Building a Team Leverett Broadband Committee & Current MLP Board

Core Skills – conversant vs. professional Technical – consider & match options to community Political – leadership support, funding Business – financial sheets/negotiation Tax Assessor – tax impact/municipal practices Social – reach into diverse groups Grant/proposal writing – gain assistance Building a Team 5 In Our Core Working Group 1 in admin New committee forming Appropriate vendors/service providers Network Design Engineers, ISP, Construction Crew, “Outside Plant”, Project manager/“OPM” Community: Truly engaged to earn their buy-in

The state (MBI) built the middle mile ('08 - '13) Leverett supported from beginning Concurrent decline in tel service triggered DTC investigation Leverett participated in the process MBI grant ( June 2011) for $40,000 for network design Select Board appoints Broadband Committee (July 2011) Depressed real estate Contractors available (the recession ) Exceptional contractor motivation ("first last mile") Building Momentum 90% Town Meeting Approval for the bond 86% Approval for the Debt Override

2012 Economic & Sustainability 2013 Board of Selectman – informed and supportive 2013 (on going) Public Dialog 2014 Feb Feasibility Study, draft of solution 2014 Dec RFI – sought partners for solution 2015 Jan Selected partner 2015 Mar Vote 1: RFP - engineering design & select construction contractor 2016 Jun Vote 2: Authorized for Bonds & Construction 2017 Summer Begin operating the FTTP broadband Building Momentum Overwhelming majority for $230k design 145 Yes, 23 No Approval for $3.8 million bond

No business sense, need subsidies for both: Plant and Equipment (think: capital) Operating expenses (think: revenue) Similar to roads and schools - without toll booths or tuition: $3.79 general obligation municipal bond for: Build, Make ready, Project mgmnt, POPs, Other Subscriber revenue for ongoing expenses: Pole rental, pole bond, insurance, depreciation, etc The Goods! Fiber to the Home! (not the curb) Active Ethernet 39 Miles 810 Drops 610 Aerial 210 Underground Financing See: leverett.ma.us, then "LeverettNet" menu item on left, then.. page down to "Important references", select: An Overview of Institutional, Contractual and Financial Arrangements.”

Explored options: co-op, incumbent, private/public Explored partnership with GWI Refined to town owned & GWI operated profit model Capital to build – property taxes Expense to operate/maintain – subscriber fees Town assuming most risk, GWI operating and maintaining Town owned, GWI cost-plus operation Financing Service tiers vs. same to all Residential & Business services same Cost to property owner, existing services vs. possible services + property tax increase: Is this good for me? 3.3% general obligation bonds Level payments 20yr. $265k annual principle + int.

Free month from the ISP Meetings Signs CTY Newsletter Forms cache Church guilt trips Direct mail including certified as well as broadcast ISP telemarketing Engaging the Public

Town Informational Meetings Board meetings of institutions and organizations Informal public, small group, & individual meetings Town mailings to property owners Articles in local newspaper Town website Engaging the Public Public involvement: Identifies problems enabling early resolution Earns voter buy-in 1.Subscriber Intent 2.Subscriber preparedness 3.Service Agreement 4.Install “Is this a good deal for me?” Baseline service cost Construction & Post- Construction Install Costs

Generational Investment (rural electrification, ferry service, boat building) All communications moving to the Internet (TV, phone, etc.) Digital divide status and impacts Reliability, consistency, availability of Internet access Maine population trends Who is coming to fix this problem for you Cost of current utilities (Satellite/cable, cell, land line, etc.) Internet is a utility required for global participation This is like the roads, school, town floats Common Community Dialogs

Questions & Discussion Lessons Learned? Authorizations right of entry, survey, sketches Ability to opt out TV content Other?